Jan-07- 13, 2002
A performance oriented company
Fauji Fertilizer Company Limited (FFC), the largest
urea manufacturer in the country, was incorporated on May 08,1978 as a
joint venture between Fauji Foundation, Pakistan and M/s Haldor Topsoe
A/S of Denmark. It was established to fill the projected gap in demand
and indigenous production. Company shares are held by Fauji Foundation
(43%) and various investment companies, financial institutions and
individuals.
The Company was listed on Karachi and Lahore Stock
Exchanges in 1991 and on Islamabad Stock Exchange in 1992. Company
employees were also allotted shares for motivation and promoting a
sense of participation. Based on related criteria of Karachi Stock
Exchange, primarily quantum of dividend payout, FFC has been placed in
the list of top 25 companies of Pakistan consecutively for seven years
since 1994, topping the list in 1997.
FFC has many landmarks to its credit. Since
commencement of its commercial production in mid June 1982 till
December 2000, the Company has sold 22.89 million tons of fertilizers.
This includes 17.79 million tons of Sona urea and 0.52 million tons
Sona DAP in the domestic market and 0.39 million tons urea exports to
China, Iran, Philippines, India, Bangladesh, Sri Lanka, Thailand and
Tanzania. The remaining 4.19 million tons include imported fertilizers
i.e. urea, DAP, NP, etc. Presently, it is marketing over 2 million
tons of fertilizers annually and holds 44% share of the urea market.
It has saved the country around US $ 3 billion through import
substitution and contributed almost Rs. 30 billion to the Government
by way of taxes, levies, custom duties, excise duty/ surcharge on gas
purchases besides providing employment to hundreds of individuals.
FFC together with Fauji Foundation from Pakistan
and Jordan Phosphate Mines Company from Jordan sponsored the
establishment of a urea/ DAP complex at Port Qasim, Karachi. FFC-Jordan
Fertilizer Company Limited (FJFC) was incorporated in November 1993 as
a public limited company. FFC's shareholding is 30% of the paid up
capital of FJFC. Under an agreement FFC is marketing the entire
production of FJFC under its own brand name Sona.
FFC has progressed well from its inception till
to-date. Three projects in a span of less than 20 years have been set
up each incurring over US$ 300 million is a performance record
unparalleled in the country. Building on its foundations the Company
is confident to take on new challenges. FFC's vision for the 21st
century is diversification and establishing projects beyond the
territorial limits of the country in collaboration with world famous
international industrial holdings.
The manufacturing facilities, located in Goth
Machhi near Sadiqabad in Rahimyar Khan consist of two ammonia/ urea
plants with a designed production capacity of 1.33 million tons of
urea based on natural gas from Mari Gas Fields.
Over the years, the plants have demonstrated
operational excellence which serves as a reference for the related
process technology engineering concerns. Delegations from China,
Middle East and Far East have visited the Plant site to acquire
knowledge for their investment decisions.
Product quality is accorded high priority and
ISO-9002 certification confirms the excellent operational and
maintenance skills of the employees and their level of performance.
Great emphasis is placed on safe operations. Many
awards of honour from National Safety Council, U.S.A. reflect strict
compliance of plant safety standards.
FFC commenced marketing operations in April 1979
with a pre-production programme called the Seeding Programme. With the
commencement of commercial production in June 1982, FFC launched its
product under the brand name "SONA". Since inception, a
growth oriented marketing strategy has been adopted keeping in view
future expansions. FFC operates in all the four provinces of the
country and Azad Kashmir. The marketing area has been divided into 3
sales zones, 11 sales regions and 61 sales districts with a network of
over 3,000 well trained dealers. This network is spread over 1400
locations. Due to seasonality of fertilizer consumption, the Company
has established a network of 120 field warehouses to meet its storage
requirements. Company's sales activities are well supported by
planning, distribution and warehousing, advertising and sales
promotion, finance, administrative and farm agronomic services.
From the very beginning FFC was able to meet the
challenges. It was able to market its entire production and capture
the desired market share. Sona urea was accepted by the farming
community and Sona brand was established as a premium brand. With the
start-up of its plant, the country became not only self sufficient but
also surplus in urea. FFC exported urea to many countries from
1983-86. However, when local demand again exceeded production in 1986
the country again started importing urea. FFC once again came forward
and put-up another urea manufacturing facility at Goth Machhi to meet
the growing demand. The new plant commenced commercial production in
March 1993.
The Government of Pakistan deregulated the trade
and prices of phosphatic fertilizers in Aug 1993. Subsequent to this
decision FFC started self imports of these fertilizers and as a result
timely imports were arranged. Farmers were provided quality product in
bags with guaranteed correct weight. This brought a very positive
qualitative change in the phosphatic fertilizer business.
FFC believes in selling a programme rather than
just products. To this end, the Company has adopted a customer
oriented strategy by marketing quality products backed by efficient
and effective support services with emphasis on developing the market
through practical and innovative farmer education. Farmer Advisory
Service with well qualified agronomists was established by the Company
in 1981, a year before the commencement of commercial production. This
free of cost and on the spot service to the farmers is provided in the
form of crop demonstrations, field days, farmer meetings, group
discussions, farm visits and distribution of technical literature in
Urdu/ Sindhi on important crops. The farmers are also provided highly
subsidized soil/ water testing facilities through three laboratories
equipped with the state of art equipment and computerized
recommendation systems. The Company pursues an innovative education
oriented advertising policy utilizing electronic/ print media and
roadside advertising. Radio commercials are developed in regional
languages.
FFC has conducted four international seminars on
core agricultural issues. Through these seminars which were attended
by various local and foreign luminaries, special recommendations were
developed to address the issues and enhance agri. production.
Fauji Fertilizer Company Ltd. remains committed to
continue to play its role in the development of agriculture in
Pakistan by not only supplying high quality fertilizers but also
technical services to the farmers in the years to come for improving
agricultural productivity and increasing their income.
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